(TARS) Tarsus Pharmaceuticals - Overview
Sector: Healthcare | Industry: Biotechnology | Exchange: NASDAQ (USA) | Market Cap: 2.788m USD | Total Return: 44.9% in 12m
Avg Turnover: 40.1M
Qual. Beats: -1
Rev. Trend: 98.9%
Qual. Beats: 6
Warnings
High Debt/EBITDA (7.7) with thin interest coverage (-4.7)
High Debt while negative Cash Flow
Interest Coverage Ratio -4.7 is critical
Altman Z'' -0.46 < 1.0 - financial distress zone
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
Tarsus Pharmaceuticals (TARS) is a commercial-stage biopharmaceutical firm specializing in ophthalmic and infectious disease treatments. Its lead product, XDEMVY, is the first FDA-approved prescription eye drop targeting Demodex blepharitis, an eyelid inflammation caused by mite infestation. The company operates on a specialty distribution model, supplying products to pharmacies, clinics, and federal healthcare programs.
The companys pipeline utilizes lotilaner, a parasite-neutralizing agent, currently in Phase 2 trials for ocular rosacea and Lyme disease prevention. Biopharmaceutical companies at this stage often face high R&D costs and significant regulatory hurdles before achieving broad market penetration. Tarsus has expanded its geographic reach through a licensing agreement to develop its primary candidate for the Chinese market.
Investors can evaluate the long-term growth potential of these clinical assets by reviewing the detailed financial modeling available on ValueRay. Tarsus is headquartered in Irvine, California, and continues to explore the lotilaner active pharmaceutical ingredient for broader applications in human medicine.
- XDEMVY prescription volume growth drives primary revenue and market penetration
- Payer coverage expansion and formulary placement determine long-term net pricing
- Clinical trial results for TP-03 in China influence international licensing revenue
- Phase 2 data for TP-04 and TP-05 dictate pipeline valuation shifts
- High R&D and commercialization expenses impact cash runway and capital needs
| Net Income: -48.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.05 > 0.02 and ΔFCF/TA 9.13 > 1.0 |
| NWC/Revenue: 73.58% < 20% (prev 168.8%; Δ -95.23% < -1%) |
| CFO/TA -0.03 > 3% & CFO -16.5m > Net Income -48.3m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 3.74 > 1.5 & < 3 |
| Outstanding Shares: last quarter (43.0m) vs 12m ago 9.18% < -2% |
| Gross Margin: 90.44% > 18% (prev 0.93%; Δ 8.95k% > 0.5%) |
| Asset Turnover: 98.92% > 50% (prev 46.66%; Δ 52.25% > 0%) |
| Interest Coverage Ratio: -4.70 > 6 (EBITDA TTM -39.1m / Interest Expense TTM 8.70m) |
| A: 0.68 (Total Current Assets 537.2m - Total Current Liabilities 143.5m) / Total Assets 581.1m |
| B: -0.75 (Retained Earnings -433.6m / Total Assets 581.1m) |
| C: -0.08 (EBIT TTM -40.9m / Avg Total Assets 540.9m) |
| D: -1.87 (Book Value of Equity -433.9m / Total Liabilities 232.2m) |
| Altman-Z'' = -0.46 = B |
| DSRI: 0.80 (Receivables 117.2m/64.2m, Revenue 535.1m/233.7m) |
| GMI: 1.03 (GM 90.44% / 92.99%) |
| AQI: 0.83 (AQ_t 0.03 / AQ_t-1 0.03) |
| SGI: 2.29 (Revenue 535.1m / 233.7m) |
| TATA: -0.05 (NI -48.3m - CFO -16.5m) / TA 581.1m) |
| Beneish M = -2.40 (Cap -4..+1) = BBB |
As of May 24, 2026, the stock is trading at USD 63.48 with a total of 271,820 shares traded.
Over the past week, the price has changed by -0.35%,
over one month by -1.92%,
over three months by -10.53% and
over the past year by +44.89%.
Tarsus Pharmaceuticals has received a consensus analysts rating of 4.63. Therefore, it is recommended to buy TARS.
- StrongBuy: 6
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 94.1 | 48.3% |
P/S = 5.2096
P/B = 7.9957
Revenue TTM = 535.1m USD
EBIT TTM = -40.9m USD
EBITDA TTM = -39.1m USD
Long Term Debt = 72.6m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 88.7m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -300.1m USD (calculated: Debt 88.7m - CCE 388.7m)
Enterprise Value = 2.49b USD (2.79b + Debt 88.7m - CCE 388.7m)
Interest Coverage Ratio = -4.70 (Ebit TTM -40.9m / Interest Expense TTM 8.70m)
EV/FCF = -78.87x (Enterprise Value 2.49b / FCF TTM -31.5m)
FCF Yield = -1.27% (FCF TTM -31.5m / Enterprise Value 2.49b)
FCF Margin = -5.89% (FCF TTM -31.5m / Revenue TTM 535.1m)
Net Margin = -9.02% (Net Income TTM -48.3m / Revenue TTM 535.1m)
Gross Margin = 90.44% ((Revenue TTM 535.1m - Cost of Revenue TTM 51.2m) / Revenue TTM)
Gross Margin QoQ = 94.20% (prev 92.80%)
Tobins Q-Ratio = 4.28 (Enterprise Value 2.49b / Total Assets 581.1m)
Interest Expense / Debt = 9.82% (Interest Expense 8.70m / Debt 88.7m)
Taxrate = 21.0% (US default 21%)
NOPAT = -32.3m (EBIT -40.9m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 3.74 (Total Current Assets 537.2m / Total Current Liabilities 143.5m)
Debt / Equity = 0.25 (Debt 88.7m / totalStockholderEquity, last quarter 349.0m)
Debt / EBITDA = 7.67 (negative EBITDA) (Net Debt -300.1m / EBITDA -39.1m)
Debt / FCF = 9.51 (negative FCF - burning cash) (Net Debt -300.1m / FCF TTM -31.5m)
Total Stockholder Equity = 340.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -8.92% (Net Income -48.3m / Total Assets 581.1m)
RoE = -6.24% (Net Income TTM -48.3m / Total Stockholder Equity 773.6m)
RoCE = -4.83% (EBIT -40.9m / Capital Employed (Equity 773.6m + L.T.Debt 72.6m))
RoIC = -7.38% (negative operating profit) (NOPAT -32.3m / Invested Capital 437.6m)
WACC = 7.35% (E(2.79b)/V(2.88b) * Re(7.34%) + D(88.7m)/V(2.88b) * Rd(9.82%) * (1-Tc(0.21)))
Discount Rate = 7.34% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 14.07%
[DCF] Fair Price = unknown (Cash Flow -31.5m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.85 | # QB: -1
Revenue Correlation: 98.91 | Revenue CAGR: 230.8% | SUE: 4.0 | # QB: 6
EPS current Quarter (2026-06-30): EPS=-0.27 | Chg30d=-50.94% | Revisions=-25% | Analysts=6
EPS next Quarter (2026-09-30): EPS=-0.22 | Chg30d=+5.17% | Revisions=-11% | Analysts=6
EPS current Year (2026-12-31): EPS=-0.71 | Chg30d=+2.97% | Revisions=+11% | GrowthEPS=+55.5% | GrowthRev=+54.3%
EPS next Year (2027-12-31): EPS=2.74 | Chg30d=-5.91% | Revisions=-33% | GrowthEPS=+486.5% | GrowthRev=+29.9%
[Analyst] Revisions Ratio: -33%